Selected Unaudited Key Performance Indicators

Note:
The above unaudited financial data is prepared in accordance with the generally accepted accounting principles in Hong Kong. The effect of the revision of the estimated useful lives of certain switching centre equipment is included in the financial data for the first quarter of 2007.

Notes:
* for the relevant reporting period

By leveraging strong network and brand advantages, further strengthening economies of scale, developing innovation capabilities and implementing proactive and effective marketing strategies, the Group continued to maintain a favorable growth in its financial results for the first quarter of 2007. The Group's operating revenue reached RMB77.707 billion, representing an increase of 19.5% compared to the same period of last year. EBITDA reached RMB40.719 billion, representing an increase of 13.8% compared to the same period of last year. Profit attributable to shareholders reached RMB17.562 billion, representing an increase of 22.3% compared to the same period of last year. Margin of profit attributable to shareholders reached a relatively high level of 22.6%.

With the overall economy of China continued to maintain a favorable growth, together with the Group's highly efficient quality network, strong brand advantages and economies of scale, the Group continued to achieve a commendable overall results in the first quarter of 2007. Subscriber growth maintains a strong momentum and the average monthly net additional subscribers for this quarter reached 4.96 million, representing an increase of 11.9% compared to the average monthly net additional subscribers of 4.44 million of last year. Total subscribers reached 316.12 million As at 31 March 2007. However, as the new subscribers are mainly low-end users and with the progressive launch of new packages with new tariffs, in this quarter, ARPU and average revenue per minute of usage recorded some decrease but the voice usage volume showed a favorable price elasticity. Total voice usage increased by 42.7% compared to the same period of last year. Value-added business also continued its rapid growth and Short Message Services usage volume increased by 39.7% compared to the same period of last year. The favorable growth in subscriber base and voice usage volume, the effective stimulation of voice usage volume as a result of the price elasticity and the rapid growth in value-added business resulted in a satisfactory increase of 19.5% in operating revenue in the first quarter. The Group will continue to increase its costs and resources in the areas of network optimization, sales and marketing channels development and customer retention in order to maintain the Group's competitive advantages and the Group's ability in maintaining a healthy and sustainable growth. Furthermore, the Group will continue to maintain stable growth in its profitability through refined cost control methods and by leveraging economies of scale.

The Group will persist in its strategic positioning as a "Mobile Information Expert", leverage its economies of scale, focus on premium quality, actively seek opportunities for expansion and growth, constantly promote innovations so as to maintain sustainable development and enhance its overall strengths and maintain a favorable and harmonious environment in the industry. This will better serve the long-term interests of consumers, operating companies and investors.